EX-99 2 c57794exv99.htm EX-99 exv99
Exhibit 99
(GRAPHIC)
         
News Contact:
  Bill Ulland   For Immediate Release
 
  Chairman, President & CEO   April 28, 2010
 
  (218) 628-2217    
IKONICS REPORTS STRONG EARNINGS AND SALES
DULUTH, MN — IKONICS Corporation (NASDAQ:IKNX), a Duluth based imaging technology company, announced today a 279% increase in 2010 first quarter earnings to $148,000, or $0.08 per share, compared to $53,000, or $0.03 per share, for the first quarter of 2009. Sales increased by 3.4% to $3,685,000.
Bill Ulland, IKONICS CEO, commented that this was one of IKONICS best first quarter earnings results, and he believes it indicates that the recession is weakening. Ulland also said, “I am particularly pleased with the strong increase in our export sales, and the improvement in the performance of IKONICS Imagining which was driven by our new business initiatives. Although sales to the domestic screen print market were down from last year, the first quarter of 2009 featured some anomalous private label sales, and I’m pleased with these results. IKONICS’ balance sheet also remains strong with no long-term debt and $2,221,000 in cash and short-term investments.”
In commenting on the Company’s new initiatives, Ulland said, “I’m particularly encouraged by the performance of our patent pending Digital Texturing program. I believe this and other efforts in our non-traditional markets provide further reason for optimism in 2010.”
This press release contains forward-looking statements regarding sales, net earnings, and new products that involve risks and uncertainties. The Company’s actual results could differ materially as a result of domestic and global economic conditions, competitive market conditions, acceptance of new products, the ability to identify and make suitable acquisitions, as well as the factors described in the Company’s Form s 10-K, and 10-Q, and other reports on file with the SEC.

 

 

IKONICS Corporation
CONDENSED STATEMENTS OF OPERATIONS (unaudited)
For the Three Months Ended March 31, 2010 and 2009
                 
    Three Months Ended  
    3/31/10     3/31/09  
Net Sales
   $ 3,684,577     $ 3,563,212  
Cost of Goods Sold
     2,200,782       2,157,898  
 
            
Gross Profit
     1,483,795       1,405,314  
Operating expenses
     1,361,093       1,388,864  
 
            
Income from operations
     122,702       16,450  
Gain on sale of non-marketable equity securities
     —       20,131  
Interest income
     3,519       70  
 
            
Income before income taxes
     126,221       36,651  
Income tax benefit
     (22,120 )     (16,484 )
 
            
Net income
   $ 148,341     $ 53,135  
 
            
Earnings per common share-diluted
   $ 0.08     $ 0.03  
 
            
Average shares outstanding-diluted
     1,969,433       1,989,866  
Condensed Balance Sheets
As of March 31, 2010 and December 31, 2009
                 
    3/31/10     12/31/09  
    (unaudited)          
Assets
                
Current assets
   $ 6,545,307     $ 6,417,488  
Property, plant and equipment, net
     5,193,071       5,234,244  
Intangible assets, net
     341,607       345,540  
 
            
 
   $ 12,079,985     $ 11,997,272  
 
            
Liabilities and Stockholders’ Equity
                
Current liabilities
   $ 736,712     $ 809,186  
Deferred income taxes
     162,000       162,000  
Long term debt
     —       —  
Stockholders’ equity
     11,181,273       11,026,086  
 
            
 
   $ 12,079,985     $ 11,997,272  
 
            
CONDENSED STATEMENTS OF CASH FLOW (unaudited)
For the Three Months Ended March 31, 2010 and 2009
                 
    3/31/10     3/31/09  
Net cash provided by operating activities
   $ 184,442     $ 431,010  
Net cash used in investing activities
     (73,256 )     (29,648 )
Net cash used in financing activities
     —       (69,213 )
 
            
Net increase in cash
     111,186       332,149  
Cash at beginning of period
     1,304,586       901,738  
 
            
Cash at end of period
   $ 1,415,772     $ 1,233,887